In Commodity News 12/05/2015
For May’15, base metal prices are likely to trade mixed as consistent weak economic data from China along with rising expectations of delay in interest rate hike by the US will be supportive, the latest report by Angel Commodities said.
“ However, Greece debt situation still remain vulnerable with a major repayment of 7.5 million Euros due on 12th May to the IMF,” Angel says.
Copper prices are likely to trade higher in May’15 as supply glut concerns due to ramp up production and new mines will exert pressure on prices. Also, major consumer China has reduced spot purchases owing to a slowing economy and local demand is not expected to increase strongly in the near term.
“We expect Aluminium prices to trade lower in May’15 as supply glut concerns amidst weak demand as Chinese output is likely to increase further due to increasing supplies and tax rebates will exert pressure on prices.” Also, slowest rate of aluminum consumption in three years as forecasted by Alcoa, the largest producer in the United States will act as a negative factor for prices.
Angel expects Nickel prices to trade higher in May’15 as Nickel Asia Corp, largest miner in China, forecasts that Southeast Asian nation won’t be able to supply enough ore once China exhausts stockpiles built up before last year’s export ban by Indonesia, thereby fuelling supply concerns.
Also, China’s stainless steel production, which accounts for 85% of the nation’s nickel consumption, is expected to gain momentum in the second half of the year resulting in its nickel demand expanding 3% in 2015, the report said.
